The company's falling revenue and EBIT loss are concerning. Its balance sheet, burdened with liabilities relative to cash, makes any debt unwise. The balance sheet isn't match-fit but could improve over time. The company's CN¥178m cash burn last year adds risk to the stock.
Despite high revenue growth forecasts, market hesitation due to serious risk factors could affect the company's presently low P/S ratio. Investors should be vigilant of these risks.
China Greatwall Technology Group Stock Forum
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